Let’s take a look at what an optimized and effective checklist of Procurement Success Secrets can do for business owners, senior management, purchasing professionals, and entrepreneurs at all levels. My checklist has directly led to a COMPETITIVE EDGE and LOWER OPERATING COSTS for my clients that lets them STAND OUT from their competition. And, it has given me the leverage to grow my business and my brand to the level that I have today. Now let’s get down to the nuts and bolts … 10 simple strategies for an effective, way to lower your costs of goods and services that you can implement right away… 10 Simple Procurement Success Secrets for Maximum Effectiveness and Results …
Top 10 Procurement Success Secrets:
1. Understand the various components that make up the pricing for the product/service you are looking to purchase such as the cost of its materials, labor, packaging, overhead, profit etc.
2. Research the supply base of the product/service you are sourcing – is it a monopoly, duopoly, or a highly competitive marketplace? Determine which suppliers are the market leaders and which suppliers are the up and comers. Who is utilizing the latest most effective processes and equipment?
3. When creating a request for quotation (RFQ), spend sufficient time to articulate and detail the product/service you are sourcing – this will minimize supplier questions and time spent on back-end analysis.
4. Standardize the product/service you are sourcing – work with your internal stakeholders not to limit choices but to aggregate volumes as much as possible.
5. Develop target savings for the product/service you are sourcing – the targets should be achievable and based upon a realistic time frame for implementation.
6. Ask suppliers for their input on process improvements and innovation. Maintain neutrality– balance your interaction with incumbents as well as with new suppliers that you are developing.
7. Engage in proper negotiations with the chosen supplier(s) to obtain the lowest total cost of ownership – always ask for preferential terms and pricing. Analyze your offers. Who has the best terms and conditions, pricing, quality, relationship, capacity to provide optimum service?
8. Document and optimize your agreement – use preferred contractual language to document the great deal you made.
9. Value and continue to improve relationships with your suppliers. Collaborate with them regularly and during quarterly or bi-annual reviews. Discuss what is going well and what areas need improvement.
10. Benchmark your existing pricing and programs. This will help you to lower your operational costs and give you insight into your existing competitiveness in the marketplace. Any weaknesses that exist in your current programs will be identified. By leveraging the external best practices and knowledge of others, you can work towards turning the weaknesses in your existing programs into strengths.
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If you want us to benchmark some of your category spends, know how to improve your existing purchasing programs, save more on your cost of goods and services, and how to quickly and easily optimize your existing programs, click here to qualify for your complimentary strategy session with me to explore that…and to find out what you can do to have a results breakthrough.
I have a limited number of appointments available and request that only business owners and executive management who are ready to take the next step and serious about dramatically increasing their results apply for a time to talk.
Jack Trotsky is known by his clients as “The Purchasing Consulting Master” and “Cost Slasher.” His business owner and senior executive clients say he provides a high level of measurable cost savings, a competitive edge, and lower operating costs and increased profitability year over year. Working with Jack requires no out of pocket costs. Pay only for results – you pay nothing until he shows you what you can save. With a Fortune 500 pedigree at GE, ConAgra, and Hunt-Wesson, he launched his purchasing consulting firm in 2015 and has grown it into what is today PurchasingResults.com. Jack has a long history of transforming procurement processes, implementing and managing change while providing a competitive cost advantage for businesses across a variety of industries. He has spoken all over the US and internationally, at universities, as well as at training & employee development workshops and conferences. Jack’s clients include GE, Gate Gourmet, Retail Companies-various projects including negotiated leased space, Large Food Distributors, National Dry Ice Company, Consumer Packaged Goods Companies, Industrial Manufacturers, Service Companies, and Food Manufacturers. He currently resides in the Denver Metropolitan area.
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